The present invention relates generally to business systems in the field of marketing, and specifically, to systems and methods for creating and maintaining lists of desirable, motivated customers, which lists can be used by a product manufacturer or distributor in targeted marketing directed to customers who are likely to be responsive to advertising or marketing materials.
Sales generating materials, typically discount coupons or sweepstakes prize tickets, have long been distributed by manufacturers to merchandise their products and by retail stores to attract consumers to their particular stores. Both coupon types are typically distributed on a large scale basis as free-standing inserts (xe2x80x9cFSIsxe2x80x9d) in newspapers, direct mail, door to door distribution, and other forms of mass distribution. Such coupons are generally of limited effectiveness in increasing consumer purchases. For example, redemption rates for free-standing inserts are approximately in the range of one to three percent (1-3%) and are decreasing every year.
A further problem of FSIs as a coupon distribution system is the fraud problem known as gang-cutting. In this scheme, the coupons are diverted from the distribution channel, then cut up into individual coupons, then bundled and submitted for redemption by dishonest retailers through the usual redemption channels. The manufacturer then credits the redeeming retailer with the value of the coupons, even though a consumer never actually purchased a product using the coupon, which would warrant the grant of such a credit. This problem is sufficiently significant that coupons distributed through a FSI are usually limited in their dollar value. Even without such fraud, there is still a significant misredemption rate arising from incorrect identification of the coupons.
In order to alleviate these problems, consumer product firms are perpetually seeking ways to identify and target their sales promotions to their core constituencies who will respond to the marketing effort. A series of systems have been suggested for creating coupon systems which identify the consumer who redeems the coupon, but typical systems which require the consumer to fill out a form, or to use computer program to enter data then print coupons, or to use a store identification card, often have low rates of compiling complete data.
As a consequence, numerous firms are in the business of creating and leasing mailing lists to consumer product marketing companies, who will often process these list in various ways in an effort to select customers to receive a coupon, mailing or other advertising or marketing solicitation that are most likely to be responsive to such solicitation. As noted, the typical response rate for an FSI is quite low; the response rate is also very low for uncontrolled mass mailing of coupons or other sales solicitations for consumer products. Typically, such mass mailed items, such as brochures, flyers, and the like contain inquiry cards or product promotion redemptions, which can be returned to so called fulfillment houses for credits or refunds; or they may contain coupons redeemable at retail where a customer will receive price discounts on new product purchases. The coupons redeemed at retail are also returned to fulfillment houses, but do not contain nor are they usually required to have the customer name and address. While millions of such coupons are redeemed at retail annually, the product manufacturer rarely learns the name and address of the redeeming customer. Given the expense of printing and distributing such sales solicitations, there is an exceptional need for methods to create and maintain mailing and other lists of consumers who are likely to be motivated to purchase a particular product.
It is an object of the invention to provide a computer-implemented method and system to identify desirable customers for targeted advertising or marketing, and to use a list of such identified customers as the primary target for coupons and other sales triggering promotions.
A specific object of the invention is to provide a system and method for using a mailing label to be applied to magazines, newspapers, circulars or other mass mailing items, which has a subscriber""s name and address, which label can be removed and used in connection with coupon redemption, in order to generate a mailing list of desirable, motivated customers.
More broadly, the present invention is a computer-implemented method of identifying desirable customers for targeted advertising or marketing, comprising the steps of: (1) applying a removable label, bearing information identifying a subscriber, to a subscription periodical publication delivered to the subscriber; (2) providing a customer benefit program activated by removing the removable label from the publication and applying the removable label to a customer benefit redemption form; (3) creating a computer database record containing information identifying a subscriber who participates in the customer benefit program by removing the label from the publication and applying the removable label to a customer benefit redemption form and submitting the customer benefit redemption form to a redemption agent; and (4) compiling, from one or more of the records, a computer database comprising records of the persons who participate in the customer benefit program, as well as records identifying a product whose sale is promoted by the customer benefit program. The computer database is then used to generate delivery of product information or product offers related to products promoted in the customer benefit program to persons listed in the database. Delivery of such promotional materials may typically be by U.S. Postal Service, but other methods, including personal delivery or electronic mail service may also be utilized, depending on the nature of the information collected.
The subscriber identifying information will typically comprise the name and address of the subscriber. Preferably, this information is embodied in a machine readable text, or codes such as numeric codes, or scannable bar codes.
In order to attract the customer""s attention to the customer benefit program, the removable label further is provided with advertising indicia, such as a logo or slogan identifying a company which is providing the customer benefit program and/or information for locating the customer benefit redemption form in the publication. In one preferred embodiment, an advertising message is imprinted in a substrate below the removable label, so that it becomes visible upon removal of the label.
The customer benefit redemption form may comprise a store discount coupon, or a returnable form, or other benefit to the consumer. In one embodiment, the customer benefit redemption form is a high value store discount coupon. In another embodiment, the customer benefit redemption form comprises a mail in form, which when returned, will trigger delivery of a product or value, such as a store discount coupon.
The foregoing and other features of the present invention are more fully described with reference to the following drawings annexed hereto. Other objects, features and advantages of the present invention will be apparent from the description hereinafter.